Since June 11, users have withdrawn more than 336 000 coins from the platform

CryptoQuant records a record daily outflow of ETH from the Coinbase exchange for the year

12.06.2024 - 11:55

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3 min

What’s new? Crypto analyst Burak Kesmeci has drawn attention to a significant outflow of native tokens of the Ethereum blockchain from the US crypto exchange Coinbase. Thus, since June 11, 336 284 ETH worth $1,172 billion have been withdrawn from the platform, which was the largest daily outflow for the year. In addition, this is the fifth time this year that the daily outflow has exceeded 150 000 coins.

Analyst’s post on the CryptoQuant platform

What else is known? Kesmeci noted that in each of these cases, the daily transaction amounts ranged from $400 million to $1,1 billion, and it would be “overly optimistic to think that individual investors are behind them.”

The analyst believes that large holders are making such significant withdrawals or as yet unidentified institutions. However, he concedes that the exchange itself could carry out the transactions as part of wallet maintenance or other tasks.

If investors, rather than the exchange itself, are behind the transactions, we have “a quite positive indicator for the long term,” the analyst believes. For example, there was similar activity on Coinbase ahead of the launch of spot bitcoin exchange-traded funds (ETFs) on January 11. It can be assumed that the outflow of ETH was initiated by whales and institutions expecting the growth of ETH as a result of the launch of spot funds based on it.

Media: SEC has yet to comment on applications to launch spot ETH ETFs

Media: SEC has yet to comment on applications to launch spot ETH ETFs

The documents were submitted to the commission as early as the end of last month

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“Whether this assumption is correct will become clear in the coming days. However, such movements that reduce the circulating supply (high demand) are expected to have a positive impact on the price in the medium to long term,” the expert concluded.

Two days earlier, a crypto analyst under the nickname Shayan B allowed the possibility of the ETH exchange rate correction in the short term. Thus, the seven-day moving average (MA) of the Taker Buy Sell Ratio, which assesses the aggressiveness of buyers versus sellers, did not rise above the mark of 1 and even declined in recent days, although the asset sought to overcome the $4000 mark.

According to him, this trend suggests that most futures traders were actively selling Ethereum either for speculative purposes or to lock in profits. Shayan B concluded that a significant drop in the index is a bearish signal and the price decline could continue if the trend continues

At the time of writing, ETH is trading on the largest crypto exchange Binance at $3544, adding 0,58% per day. The weekly drop was 6,7%, while the asset has grown by 55,24% since the beginning of the year.

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